Limitless the Dubai investment vehicle has made a bid for Minerva, UK property developer.
Howver some of Minerva's top end developments aye joint ventures on a profit sharing basis with Northacre, the main market hasn't woken up to this yet. Once they go through the books with a fine toothcome a bid for Northace will follow.
Hello Gulfer and welcome to the is-there-no-limit stock forum .
Limitless is a company I don't follow much, mostly because it's not a publicly owned company. But for UK investors it is of course of more interest if Limitless are making acquisitions of listed companies.
Minerva is not the first European property company that has attracted the interest of a Dubai or UAE based company, and won't be the last. Aldar Properties (ALDAR) for example (listed in Abu Dhabi), has said they're on the acquisition trail.
If Northacre / Northace was an attractive proposition to Limitless, why wouldn't they have already put in a bid for them? I can't imagine Limitless are unaware of whatever JV arrangements there are between Minerva and Northacre / Northace. Maybe Limitless decided that Minerva was the better of the 2 companies to put in a bid for? _________________ UAE IPO list | posting guidelines
Limitless are picking up Minerva at almost fire sale values - the sub prime ripple and the 'r' word have made UK property firms fall to bargain basement prices.
However Northacre have partnerships / joint ventures with Minerva on a profit sharing basis, which, initially may seem a small part of Minerva's whole portfolio / land bank.
But (Aint there always!) Northacre's sole area of interest is in Kensington / Chelsea which are not sub prime but super prime - the one place in the UK where prices are still rising and the super rich are their clients.
Once Limitless have Minerva they will almos have to make a play for Northacre. Also, the Northacre ' Brand ' will fit in with limitless.
That RNS "The Company has been notified that Mr John RG Hunter, Director, has disposed of 1,500,000 ordinary shares of 2.5p ("Ordinary Shares") to MAR Investments Ltd, an investment vehicle owned by Mr Mohamed Al Rafi, Director, at 20 pence per share representing 5.6 per cent of the current issued Ordinary Shares. Following this sale Mr Hunter now holds 3,150,000 Ordinary Shares representing 11.8 per cent of the issued Ordinary Shares and MAR Investments Limited now holds 5,510,000 Ordinary Shares representing 20.6 per cent of the issued Ordinary Shares."
Northacre set to reap rewards from London's prime house price boom
Northacre (LON:NTA) has had a hard life on London's Aim market over the last 10 years, building fantastic, quality multi million pound houses and flats, but never making any real profits. That appears to be about to change with its flagship project The Lancasters overlooking Hyde park.
Northacre purchased the former Thistle hotel at Lancaster Gate in 2006 for £67M in a joint venture with Minerva
In 2007 Northacre gained planning for 74 super flats and two town houses. Days later Minerva pulled off a trick of a lifetime refinanceing the land loan, [ on the back of the increased land value.] A new £215M land, build, and interest loan was agreed just hours prior to the 2007 credit crunch.
Today, a year away from completion, 50% of the scheme has been pre sold at prices double the going rate in Westminster back in 2006 when the site was aquired. Total projected sales are now looking to come in around £500 Million
Very few large projects ever come out on budget , so it might be advisable to slap on an extra £50M in costs and remove £35M from projected sales [if the market turns down a tad.] The joint venture equity is split 95% Minerva 5% Northacre, with Northacre able to earn up to 50% of the profits. Clues as to the actual amount Northacre will recive can be found in Minervas accounts, as they re value their trading property, and "book their share" twice a year. Northacres share of the pot so far stands in at £40M. Even on a poor day The Lancaster appeas to be about to clear £200M, an outstanding amount. Minerva looks like clearing £120M and Northacre £80M. Northacre trades at 30p, all its shares at that price come to £8.5M
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